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If you get a loan for a car you will be required to have 'full coverage', or comp and collision. Insurance companies will not provide 'physical damage' coverage on salvage titles. Reason? They pay replacement cost on damages. A vehicle that was bought for pennies on the dollar getting replacement cost coverage would be considered insurance fraud if the salvage is not disclosed. Typically the new 'vin' number shows some indication of a salvaged title.

Don't look for a loan because it can't be insured with a lien holder that requires physical damage coverag. Your buddy better double check his quote.

Such cars are considered worthless as far as physical condition is concerned. A lender would have to approve it as an unsecured loan. Unsecured loans are where you borrow money for any purpose without collateral.

Then the answer is "no" - I'm not aware of any banks that finance salvage cars. None. Nada. I even tried searching online and came across none, or at least none that admitted it. I also came across many sites that reaffirm that banks do not finance them.

Then the answer is "no" - I'm not aware of any banks that finance salvage cars. None. Nada. I even tried searching online and came across none, or at least none that admitted it. I also came across many sites that reaffirm that banks do not finance them.

Then the answer is "no" - I'm not aware of any banks that finance salvage cars. None. Nada. I even tried searching online and came across none, or at least none that admitted it. I also came across many sites that reaffirm that banks do not finance them.

Tried a local CU. They told us no matter how good the credit might be it is against their policy and they cannot finance a car with salvage title (it is rebuilt from salvage already BTW)

So far called PenFed, USAA, Navy and Alliant. Have not tried any big banks, just USAA and CUs...

Yeah I think it's just hard because they can't really value it and they will have a hard time getting rid of it should the borrower default. Plus usually with salvage vehicles you aren't talking a lot of money, at least not that would exceed the limits of a personal loan. Like mentioned above, most salvage buyers pay cash. Maybe a local mom-and-pop bank? Good luck on your search.

This policy of not writing loans on salvaged vehicles and not offering full coverage is particularly unfair to the vehicles that were stolen and recovered after payout.

Banks and insurance companies are businesses that don't make money on niche transactions and exceptions to the rule. The reality is that most salvaged vehicles WERE in a collision at one point and whoever put them back on the road PROBABLY didn't do as good of a job that an insurance paid body shop would have done.

If the car is really old, you might be able to get classic car insurance. I wouldn't trust Geico to provide full coverage on a salvaged vehicle unless they disclosed what the total loss payout would be in advance. I could just see them pulling 3 comps and paying you $500 for your salvage vehicle that you paid $6,000 for.

If you spend $20,000 on a used IS250 and finance it through PenFed for 48mo, your payments will be $433

If you spend $16,000 on a salvage IS250 and finance it at 13%, you'll have a payment of $429

I know you can get a personal loan at less than 13%. You could actually put the car on a credit card with a 0% introductory rate [the dealer would be less likely to give you a good deal if they have to pay the transaction fee, but they should be happy to unload a salvage car that they can't offer financing on]

If you get a good credit card [like an SF Fire CU Visa] they will advance you cash at 7.25% apr and there is no cash advance fee. This is basically a personal line of credit at 7.25%. You're still well under the 13% threshold.

I would suggest negotiating a little more on the price of that car, though. If it was professionally rebuilt, I would only offer 50% of Blue Book.
If the car had a clean title, I would offer 80% of Blue Book.

This car is going to be hard to sell. Don't let your desire for it cloud the facts. This is an incredibly hard car for them to sell and it's going to be incredibly hard to resell. You're going to need to hold onto it until the value is below $8,000. Not many people buy used cars with more than $8,000 cash.